p–ISSN: 2723 - 6609 e-ISSN: 2745-5254

Vol. 5, No. 10, October 2024 http://jist.publikasiindonesia.id/

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4506

Good Demand-Supply Matching Practices as A Key to The Efficiency

and Effectiveness of Free Nutritional Meal Programs: Leveraging

Diverse Supply Sources to Maximize Government Expenditure Value

R. Beniadi Setiawan

Ikatan Ahli Rantai Suplai Indonesia, Indonesia

Email: [email protected]*

*Correspondence

ABSTRACT

Keywords: Demand -

Supply Matching; Inventory

Strategy; Supply Chain

Strategy; Free Nutritional

Meal Programs Logistics

Strategy

The free nutritious food program initiated by President-elect

Prabowo and his cabinet aims to improve the quality of life of

Indonesians, especially vulnerable groups. Various factors,

including good demand and supply matching practices, largely

determine the success of this program. The objective of this

research is to analyze the best strategies and techniques for

matching demand and supply, as well as for effective inventory

management for this program. The research method used is

qualitative, with data collection through literature study. After

collecting the data, the analysis is done through several stages:

filtering, data presentation, and conclusion drawing. The results

show that good inventory management and supply-demand

matching are key factors for the success of this program. Some

strategies and techniques identified include careful planning,

robust information systems, efficient supply chain management,

good inventory management techniques, and diversification of

supply sources. Diversifying supply sources helps the government

reduce costs, improve food quality, support local economies, and

strengthen national food security. By implementing these

strategies, the government can ensure that the free nutritious food

program can run efficiently and effectively and provide optimal

benefits to the wider community.

Introduction

Malnutrition remains a significant challenge in Indonesia, as reflected in the 2022

Survey on the Status of Nutrition in Indonesia (SSGI) results. The data shows that the

stunting rate in Indonesia reached 21.6%, despite a decrease from 24.4% in the previous

year. However, this figure is still far from the 14% stunting reduction target set for 2024,

indicating the need for greater efforts in addressing this issue (Hastuti & Dulame, 2024).

This high prevalence of malnutrition can hinder the future of a nation. The negative

impact of malnutrition is not only seen in children's physical growth but also affects their

brain development and intelligence.

According to Anggryni et al. (2021), in the short term, malnourished children are

at risk of brain, intelligence and metabolic disorders. Meanwhile, in the long term, they

can face a decline in cognitive ability and learning achievement, which leads to low

immunity. This makes children more susceptible to diseases, including diabetes, obesity,

Good Demand-Supply Matching Practices as a Key to The Efficiency and Effectiveness of Free

Nutritional Meal Programs: Leveraging Diverse Supply Sources to Maximize Government

Expenditure Value

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4507

heart and vascular diseases, and other health problems such as cancer and stroke in old

age. In addition, undernutrition contributes to an increased risk of illness and death in the

perinatal and neonatal periods, which can worsen the quality of future human resources.

This will result in lower economic productivity and the ability to compete in the global

market. Therefore, a comprehensive response to nutrition is essential to improve the

quality of life and the nation's future.

In response to Indonesia's nutritional challenges, the new cabinet, under the

leadership of President Prabowo, has initiated a free nutritious meal program. This

initiative aims to reduce the high malnutrition rate among vulnerable groups. The Free

Nutritious Meal or Breakfast Program in schools is expected to improve the nutritional

status of the community, which in turn shapes healthy eating habits among children. This

is in accordance with what was conveyed by Assistant Deputy for Nutrition Security and

Health Promotion of the Coordinating Ministry for Human Development and Culture

(Kemenko PMK) Jelsi Natalia Marampa in a Limited Meeting on strategies for preparing

a strong young generation towards the Golden Indonesia 2045 at the National Resilience

Council Office.

Jelsi Natalia Marampa also emphasized that school feeding is a necessary safety

net, especially for children from economically vulnerable families. By providing

nutritious meals at school, the program can provide the daily support and stability that

children need and contribute to preventing poverty, vulnerability and social exclusion

(Kemenko PMK, 2024).

However, despite the program's great potential, several challenges must be faced.

One of the main issues is limited government funding, which can hinder the program's

implementation. In addition, there are challenges in cost-efficiently maximizing the

availability of quality foodstuffs. Developing an optimal supply and demand matching

strategy ensures the program is viable. This systematic approach is necessary to ensure

that nutritious food is available on time, in adequate quantities, and of good quality

without creating wastage or shortages.

Demand-supply matching is vital in ensuring the availability of the right goods or

services at the right time and quantity (Bodin et al., 2021). In a free nutritious feeding

program, this matching ensures that the available supply can meet the food needed by

beneficiaries. This process requires careful planning, good supply chain management, and

accurate demand forecasting to avoid shortages or excess inventory so that program

operations can run efficiently and effectively.

Previous research by Reusken et al. (2023) describes a food bank supply chain

model that aims to optimize investments to maximize food assistance. The model helps

the supply chain by distributing the available investment budget, increasing the number

of beneficiaries that can be served. The results of applying this model using real-life data

from a food bank supply chain in the Netherlands showed an increase in service capacity

to 32% more beneficiaries.

The novelty of this research lies in identifying the best strategies and techniques

in demand and supply matching and effective inventory management for free nutritious

feeding programs in Indonesia that have not been studied before. The main focus of this

R. Beniadi Setiawan

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4508

research is to explore how the government can leverage diverse sources of supply to

maximize the value of government spending so that the program can run more efficiently

and be on target. It is hoped that this research can contribute new insights into the

management of nutritious feeding programs in a more efficient way. In addition, it is also

expected to explain how the government can integrate technology and best practices in

supply chain management to support the achievement of program objectives. Thus, the

main objective of this research is to analyze the best strategies and techniques in demand

and supply matching, as well as effective inventory management for free nutritional

feeding programs, ensuring that these programs can provide maximum benefits to the

people who need them.

Method

In this research, the method chosen is a qualitative approach, which means that

the research focuses on an in-depth understanding of social phenomena or behavior,

not numerical or statistical measurements. According to Haven and Van Grootel (2019),

qualitative research aims to answer questions such as “how”, “why”, and “what” related

to certain phenomena. This approach seeks to reveal the perspective of the subject that is

the focus of the research. This research applies an “emergent design,” which means there

is an iterative process of integrating data analysis, preliminary data examination, and data

collection. This flexibility in emergent design can strengthen and deepen the accuracy

and validity of qualitative studies, not the other way around.

Furthermore, the data collection technique used is a literature study, which

analyzes various relevant documents and publications. This technique helps gather

information from various sources, including books, journal articles, research reports, and

official documents. Literature studies help researchers understand and identify gaps in

research, as well as strengthen arguments or findings with evidence from previous studies

(Sutton & Austin, 2015). Then after the data has been collected, the next step is to analyze

it. This analysis process includes three stages: filtering the data or selecting and

identifying the most relevant information. Furthermore, the selected data will be

presented in a structured manner, both in the form of narratives and tables, to facilitate

understanding and observation of existing patterns or findings. The final stage is

conclusion drawing, where the researcher formulates the results of the analysis and

provides an interpretation of the meaning of the data that has been presented.

Results and Discussion

The Free Nutritious Meal Programme is one of the flagship initiatives designed

by President Prabowo to improve the nutrition of Indonesian people. The program will

be implemented starting in 2025 and has been budgeted at IDR 71 trillion. The program

not only school children at all levels of education but also pregnant women, nursing

mothers, and toddlers (Widyastuti, 2024). The aim is to address the malnutrition problem

that many Indonesian families still face, which affects children's ability to compete both

nationally and internationally. Prabowo emphasized that the program is strategic to save

Good Demand-Supply Matching Practices as a Key to The Efficiency and Effectiveness of Free

Nutritional Meal Programs: Leveraging Diverse Supply Sources to Maximize Government

Expenditure Value

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4509

the nation's future, as malnutrition can adversely affect the quality of human resources.

The program is a major investment in building a healthier and stronger generation (Vanti

et al., 2024).

Leveraging diverse sources of supply is an important strategy in maximizing the

value of government spending on programs such as free nutritious meals. Demand-supply

matching is an economic concept that describes the interaction between the goods or

services demanded by consumers (demand) and the amount offered by producers (supply)

in a market. This process aims to achieve equilibrium, where the amount of goods offered

matches the amount of goods demanded at a certain price (Al-Ghussain et al., 2021).

In an ideal situation, when demand and supply are balanced, the market is

efficient: consumers get the goods at the desired price, and producers sell the goods in the

appropriate quantity (Bodin et al., 2021). However, if there is an imbalance, such as

demand that is higher than supply (excess demand), or supply that is higher than demand

(excess supply), then there will be a change in price or quantity of production until the

market reaches equilibrium. In modern business and technology, demand-supply

matching is also used in supply chain management, where companies seek to adjust

production and distribution to market needs to avoid shortages or overstock (Häckel et

al., 2020).

Diversification of supply sources ensures that the government is not overly

dependent on one type of supplier or region, thereby reducing the risk of supply instability

that could affect the smooth running of the program (Zhu et al., 2020). By sourcing from

a variety of local, regional, and international suppliers, the government can choose the

source that offers the best price, suitable quality, and resilience to supply chain

disruptions, resulting in more efficient and effective spending, meaning that every dollar

spent in the program delivers maximum benefits (Hoek & Dobrzykowski, 2021).

Integrating supplies from local farmers is one effective way to reduce costs and

support local economies. Transport and distribution costs can be reduced when the

government works with farmers in certain areas, as food does not need to be transported

from distant places (Marpaung & Simanjuntak, 2024). In addition, by supporting local

farmers, the government helps to create economic stability in rural areas, which in turn

improves the welfare of local people. Another advantage of using local supplies is the

flexibility in adjusting to demand and the availability of fresher products (Hidayat, 2023).

Long-term contracts with large suppliers, both national and international, allow

the government to secure consistent prices and product quality, especially for food

commodities that cannot be produced locally. The government can obtain lower prices

through bulk purchasing strategies due to the large volume of purchases (Akmalia &

Kurniaty, 2024). In addition, long-term contracts help reduce price fluctuations that

usually occur in the market, thereby minimizing the risk of unexpected expenditures and

ensuring the sustainability of the nutritious food supply in the long run (Saputra et al.,

2024). Diversification of supply sources also allows governments to be more flexible in

the face of various market conditions and natural disasters that could disrupt supply

chains. If one source is disrupted due to natural disasters or price spikes, governments can

R. Beniadi Setiawan

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4510

quickly turn to alternative suppliers already in their network (Lin et al., 2021). This way,

the risk of nutritional food shortages is minimized, and expenditure remains efficient.

Overall, utilizing diverse sources of supply allows the government to balance quality,

quantity and cost, maximizing the program's spending value (Dubey et al., 2023).

Good supply and demand matching practices are key in ensuring the efficiency

and effectiveness of free nutritious feeding programs, especially when implemented

nationally (Chen & Hu, 2020). Proper matching allows the government to meet the

community's nutritional needs with the optimal amount of food, avoiding oversupply or

shortages. It is, therefore, important to understand exactly how much food is needed in

each region based on demographic data, consumption levels, and local economic

conditions. This data-driven approach ensures proper distribution, reduces wastage, and

keeps food stocks fresh and available (Janvry & Sadoulet, 2020).

To achieve optimal matching of demand and supply, the program should adopt a

responsive demand planning system, which allows for quick adjustments to community

needs or demand changes. Technologies such as predictive analytics and real-time data-

driven supply chain management can be used to monitor demand and ensure food

availability according to the needs of each region (Zhao et al., 2020). By correctly

predicting demand fluctuations, governments can prepare just the right amount of

nutritious food offerings, thus avoiding shortages that could jeopardize the smooth

running of the program or surpluses that could result in wasted resources (Yang et al.,

2020). In addition, matching supply with demand also requires diversifying sources of

supply. Governments can work with local, regional and international suppliers to ensure

that food supplies remain stable despite disruptions such as natural disasters or price

fluctuations in the global market. Utilizing supplies from local farmers, for example, can

help reduce distribution costs and support local food security (Béné, 2020). Meanwhile,

long-term contracts with large suppliers can provide more stable price certainty and avoid

unexpected cost spikes. By combining these different sources of supply, governments can

minimize risks and ensure food quality is maintained (Boyacι-Gündüz et al., 2021).

Good supply and demand matching plays a role in improving government budget

efficiency. The government can maximize every dollar spent on the program by ensuring

that the food purchased matches people's needs (Zhang et al., 2021). This more effective

use of resources also allows for more appropriate budget allocation to other parts of the

program, such as logistics and distribution, which ultimately supports the success of the

free nutritious feeding program. When demand and supply are well managed, the program

can achieve its goal of improving community welfare and maintaining long-term

sustainability (Ilzetzki, 2024).

In inventory management and supply-demand matching in free nutritious feeding

programmes, effective strategies focus on efficiently meeting people's nutritional needs,

especially under the leadership of President Prabowo or a new cabinet. The best

techniques involve using just-in-time methods to ensure that food stocks match actual

needs, reducing waste and storage costs. In addition, data-driven demand planning is

essential to predict daily, weekly or monthly needs based on factors such as demographics

Good Demand-Supply Matching Practices as a Key to The Efficiency and Effectiveness of Free

Nutritional Meal Programs: Leveraging Diverse Supply Sources to Maximize Government

Expenditure Value

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4511

and local consumption trends. In the context of good supply and demand matching, the

programme can utilize diverse supply sources from local farmers, regional suppliers, to

imported products, with the aim of maximizing the value of each government

expenditure. This diversification of supply sources not only ensures stable availability,

but also helps maintain quality and competitive prices, thus improving the efficiency and

effectiveness of the programe. As such, a proper inventory management strategy plays a

role in balancing supplies with real demand, avoiding overstocks or food shortages, and

minimizing programmer operational costs.

Conclusion

The results show that effective inventory management and supply-demand

matching are important factors in the success of free nutritious feeding programs. Some

of the strategies and techniques identified include careful planning to understand food

consumption patterns, seasonality and other factors that affect demand. In addition, the

use of robust information systems is necessary to gain a comprehensive picture of

demand, efficient supply chain management and good inventory management techniques.

Diversifying sources of supply is also important, by purchasing ingredients directly from

local farmers to support the local economy and ensure product quality. The research also

highlights the importance of utilizing NGO networks to reach remote areas, as well as

working with private companies to secure food donations or logistical assistance.

Diversifying supply sources can help the government reduce costs, improve food quality,

support local economies and strengthen national food security. By implementing these

strategies, the government can ensure that the free nutritious feeding program is efficient

and effective and provides maximum benefits to the community.

Bibliography

Akmalia, A., & Kurniaty, D. (2024). Analisis Penerapan Pengadaan Berkelanjutan pada

PT XYZ. Jurnal Bina Bangsa Ekonomika, 18(1), 361–374.

https://jbbe.lppmbinabangsa.id/index.php/jbbe/article/view/692

Al-Ghussain, L., Ahmad, A. D., Abubaker, A. M., Abujubbeh, M., Almalaq, A., &

Mohamed, M. A. (2021). A Demand-Supply Matching-Based Approach for

Mapping Renewable Resources Towards 100% Renewable Grids in 2050. IEEE

Access, 9, 58634–58651. https://doi.org/10.1109/ACCESS.2021.3072969

Anggryni, M., Mardiah, W., Hermayanti, Y., Rakhmawati, W., Ramdhanie, G. G., &

Mediani, H. S. (2021). Faktor Pemberian Nutrisi Masa Golden Age dengan Kejadian

Stunting pada Balita di Negara Berkembang. Jurnal Obsesi : Jurnal Pendidikan

Anak Usia Dini, 5(2), 1764–1776. https://doi.org/10.31004/obsesi.v5i2.967

Béné, C. (2020). Resilience of local food systems and links to food security – A review

of some important concepts in the context of COVID-19 and other shocks. Food

Security, 12(4), 805–822. https://doi.org/10.1007/s12571-020-01076-1

R. Beniadi Setiawan

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4512

Bodin, U., Dhanrajani, S., Abdalla, A. H., Diani, M., Klenk, F., Colledani, M., Palm, E.,

& Schelén, O. (2021). Demand-supply matching through auctioning for the circular

economy. Procedia Manufacturing, 54, 82–87.

https://doi.org/10.1016/j.promfg.2021.07.013

Boyacι-Gündüz, C. P., Ibrahim, S. A., Wei, O. C., & Galanakis, C. M. (2021).

Transformation of the Food Sector: Security and Resilience during the COVID-19

Pandemic. Foods, 10(3), 497. https://doi.org/10.3390/foods10030497

Chen, Y., & Hu, M. (2020). Pricing and Matching with Forward-Looking Buyers and

Sellers. Manufacturing & Service Operations Management, 22(4), 717–734.

https://doi.org/10.1287/msom.2018.0769

Dubey, R., Bryde, D. J., Dwivedi, Y. K., Graham, G., Foropon, C., & Papadopoulos, T.

(2023). Dynamic digital capabilities and supply chain resilience: The role of

government effectiveness. International Journal of Production Economics, 258,

108790. https://doi.org/10.1016/j.ijpe.2023.108790

Häckel, B., Übelhör, J., & Voit, C. (2020). Creating Competitive Advantage in E-

Business Value Chains by Using Excess Capacity via IT-enabled Marketplaces.

ACM SIGMIS Database: The DATABASE for Advances in Information Systems,

51(3), 97–118. https://doi.org/10.1145/3410977.3410983

Hastuti, W., & Dulame, I. M. (2024). Penyuluhan Masalah Stuntingterkait Pencegahan

Masalah dan Masa Depan Indonesia. Jurnal Abdi Citra, 1(2), 130–136.

https://doi.org/10.62237/jac.v1i2.151

Haven, T. L., & Grootel, Dr. L. Van. (2019). Preregistering qualitative research.

Accountability in Research, 26(3), 229–244.

https://doi.org/10.1080/08989621.2019.1580147

Hidayat, A. (2023). Diversifikasi Usaha Tani Dalam Meningkatkan Pendapatan Petani

Dan Ketahanan Pangan Lokal. 1–11. https://osf.io/preprints/bgpqr/

Hoek, R. van, & Dobrzykowski, D. (2021). Towards more balanced sourcing strategies –

are supply chain risks caused by the COVID-19 pandemic driving reshoring

considerations? Supply Chain Management: An International Journal, 26(6), 689–

701. https://doi.org/10.1108/SCM-09-2020-0498

Ilzetzki, E. (2024). Learning by Necessity: Government Demand, Capacity Constraints,

and Productivity Growth. American Economic Review, 114(8), 2436–2471.

https://doi.org/10.1257/aer.20230033

Janvry, A. de, & Sadoulet, E. (2020). Using agriculture for development: Supply- and

demand-side approaches. World Development, 133, 105003.

https://doi.org/10.1016/j.worlddev.2020.105003

Kemenko PMK. (2024, June 14). Kemenko PMK aktif dalam pemantapan Konsep

Program Makan Bergizi Gratis. Kementerian Koordinator Bidang Pembangunan

Manusia Dan Kebudayaan Republik Indonesia.

Good Demand-Supply Matching Practices as a Key to The Efficiency and Effectiveness of Free

Nutritional Meal Programs: Leveraging Diverse Supply Sources to Maximize Government

Expenditure Value

Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 10, October 2024 4513

https://www.kemenkopmk.go.id/kemenko-pmk-aktif-dalam-pemantapan-konsep-

program-makan-bergizi-gratis

Lin, Y., Fan, D., Shi, X., & Fu, M. (2021). The effects of supply chain diversification

during the COVID-19 crisis: Evidence from Chinese manufacturers. Transportation

Research Part E: Logistics and Transportation Review, 155, 102493.

https://doi.org/10.1016/j.tre.2021.102493

Marpaung, S. S., & Simanjuntak, M. (2024). Optimalisasi Profitabilitas melalui Integrasi

Supply Chain Management dan Enterprise Resource Planning: Studi Kasus PT.

Unilever Indonesia. Lancah: Jurnal Inovasi Dan Tren, 2(2b), 708–713.

Reusken, M., Cruijssen, F., & Fleuren, H. (2023). A food bank supply chain model:

Optimizing investments to maximize food assistance. International Journal of

Production Economics, 261, 108886. https://doi.org/10.1016/j.ijpe.2023.108886

Saputra, G. A., Kustiari, T., & Djamali, A. (2024). Strategi Pengembangan Budidaya

Perikanan Ikan Nila Kabupaten Jember. UNKUN: Journal of Multidisciplinary

Research, 1(2), 139–150.

https://ejournal.mediakunkun.com/index.php/kunkun/article/view/82

Sutton, J., & Austin, Z. (2015). Qualitative Research: Data Collection, Analysis, and

Management. The Canadian Journal of Hospital Pharmacy, 68(3).

https://doi.org/10.4212/cjhp.v68i3.1456

Vanti, M. E. D., Octaviani, V., & Maryaningsih, M. (2024). Analisis Framing

Pemberitaan Program Makan Gratis Prabowo Subianto Di Media Online.

Professional: Jurnal Komunikasi Dan Administrasi Publik, 11(1).

https://doi.org/10.37676/professional.v11i1.6396

Yang, H., Qin, X., Ke, J., & Ye, J. (2020). Optimizing matching time interval and

matching radius in on-demand ride-sourcing markets. Transportation Research Part

B: Methodological, 131, 84–105. https://doi.org/10.1016/j.trb.2019.11.005

Zhang, S., Hu, W., Li, M., Guo, Z., Wang, L., & Wu, L. (2021). Multiscale research on

spatial supply-demand mismatches and synergic strategies of multifunctional

cultivated land. Journal of Environmental Management, 299, 113605.

https://doi.org/10.1016/j.jenvman.2021.113605

Zhao, X., Gu, B., Gao, F., & Chen, S. (2020). Matching Model of Energy Supply and

Demand of the Integrated Energy System in Coastal Areas. Journal of Coastal

Research, 103(sp1), 983. https://doi.org/10.2112/SI103-205.1

Zhu, G., Chou, M. C., & Tsai, C. W. (2020). Lessons Learned from the COVID-19

Pandemic Exposing the Shortcomings of Current Supply Chain Operations: A Long-

Term Prescriptive Offering. Sustainability, 12(14), 5858.

https://doi.org/10.3390/su12145858